I owe my success to
having listened respectfully to the very best advice, and then going away and
doing the exact opposite.
-- G. K. Chesterton
(1874 - 1936)
Update on rental
restriction in Strata Property Act
Have you ever
told your buyers a building’s good because there are no rental restrictions? If
your client buys the unit and a rental restriction bylaw is later passed by the
strata council, who do you think your buyer will blame? Give your buyers the
information they need to make informed decisions. Helping them understand the
rental restriction provisions of the Strata Property
is an excellent place to start.
Property Act took effect
replacing the Condominium
The Act allows strata corporations to prohibit or limit owners from renting
their units. Exemptions may be available, depending on whether the tenant is a
family member and when the bylaw was adopted.
happens on January 1, 2006?
If a strata lot
was a rental strata lot under the former Condominium
and was sold by the owner who originally bought from the developer, a rental
restriction bylaw won’t apply until the date the rental period expires as
disclosed in the Rental Disclosure Statement, or January 1,
whichever occurs first.
If the owner
of the strata lot is a subsequent purchaser, and the period that the strata lot
may be rented under the Rental Disclosure Statement hasn’t expired, that owner
can continue to rent the strata lot until January 1, 2006, despite any rental
line: Even if the building in which you show a unit doesn’t have a rental
restriction, it doesn’t mean there won’t be one in the future. If your buyer
isn’t aware of this possibility, he or she could be forced to sell the unit at a
loss or suffer fines imposed by the strata council because of a breach of the
rental restriction bylaw that was passed.
can I do?
acting on behalf of either:
seller who wishes to represent that the rental disclosure statement exempts the
buyer from an existing or future rental restriction bylaw; or
seller who wishes to represent that the strata lot may be rented out;
should advise the seller to
avoid making any such representation or to seek legal advice from an experienced
strata property lawyer before making any such representation.
any REALTOR® acting on behalf of either:
buyer who wishes to rely on a rental disclosure statement to exempt him or her
from an existing or future rental restriction bylaw; or
buyer who wishes to rent out the strata lot;
should advise the buyer to
seek legal advice from an experience strata property lawyer and insert the
appropriate condition into the Contract of Purchase and Sale, giving the buyer
time to seek such advice.
can I find more information about the Strata Property Act?
To assist in the
public’s understanding of the Strata Property
BCREA has published The Condominium
Manual since December 2001.
The second edition, published in 2004, contains 60 pages of new information,
giving readers a clear understanding of how the Strata Property
regulations and standard bylaws work.
Institution Commission of BC has prepared 29 instruction guides to assist the
public. One is entitled How to Apply Rental Restriction Bylaws. All are
available at www.fic.gov.bc.ca.